Shoe Zone profit forecast halved amidst weakening consumer confidence

Shoe Zone PLC has announced a trading update, revealing that it has faced challenging market conditions during June and July 2025. The company attributes the difficult period to a weakening in consumer confidence, which has led to less discretionary spending. This trend is a result of the continued impact of inflation, high interest rates, and increased savings rates, all of which have contributed to decreased footfall in stores and a subsequent reduction in revenue and profit.

As a direct consequence of these trading conditions, Shoe Zone has revised its profit forecast for the financial year ending September 27, 2025. The company now expects its adjusted profit before tax to be approximately 2.5 million pounds, a significant decrease from its previous expectation of 5 million pounds. In light of this, the company has also decided to withdraw its current dividend policy.

Despite the challenging environment, management remains confident in its long-term strategy. The company highlighted a key milestone with the opening of its 200th new format store this month. Shoe Zone maintains a debt-free status and reports that its current cash levels are higher than those of the same period last year.

The company operates a portfolio of 271 stores across the UK, consisting of 74 original high street stores and 198 larger format stores that offer additional brands like Skechers and Hush Puppies.